{"id":151,"date":"2020-04-16T13:54:19","date_gmt":"2020-04-16T13:54:19","guid":{"rendered":"https:\/\/ancstockinvestments.com\/blog\/?p=151"},"modified":"2021-06-10T08:06:44","modified_gmt":"2021-06-10T08:06:44","slug":"1-year-after-ipo-the-amazon-of-africa-jumia","status":"publish","type":"post","link":"https:\/\/ancstockinvestments.com\/blog\/2020\/04\/16\/1-year-after-ipo-the-amazon-of-africa-jumia\/","title":{"rendered":"1 Year after IPO, The Amazon of Africa  &#8220;JUMIA&#8221;"},"content":{"rendered":"\n<p>A Year now since JUMIA was listed on the New York Stock Exchange market (NYSE).<\/p>\n\n\n\n<p>We have kept you updated from  day one of it&#8217;s listing and today we shall be given you details on Jumai &#8221;Africa Amazon&#8221; We are ANC Stock Investment Ltd, We invest for the future.<\/p>\n\n\n\n<p>A year ago , Jumia, the largest e-commerce operator across Africa, became the first major African-focused tech company to list on the New York Stock Exchange (NYSE).<\/p>\n\n\n\n<p>Jumia\u2019s listing was seen as a major milestone for Africa\u2019s fledgling tech ecosystems and for a company which had expanded to 14 African countries with businesses across several verticals since it was first founded in Nigeria in 2012.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"319\" data-src=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/logo-forex-01-1024x319.png\" alt=\"\" class=\"wp-image-153 lazyload\" data-srcset=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/logo-forex-01-1024x319.png 1024w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/logo-forex-01-300x94.png 300w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/logo-forex-01-768x240.png 768w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/logo-forex-01-1536x479.png 1536w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/logo-forex-01-2048x639.png 2048w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/logo-forex-01-1200x374.png 1200w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/logo-forex-01-1980x618.png 1980w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/319;\" \/><figcaption>Become a professional  FOREX trader with ANC Stock Investment Ltd.<br>www.ancstockinvestments.com\/forex<\/figcaption><\/figure>\n\n\n\n<p>Before its listing, investors with a track record of backing e-commerce ventures in emerging markets predicted that the novelty of an Africa-focused tech company listing on NYSE would initially prove a draw, especially among retail investors. And that turned out to be the case in the company\u2019s first days of trading. Jumia went on to raise $196 million through its initial public offering (IPO) and its stock soared on its opening day of trading, closing 75% up valuing the company at over $3 billion.<\/p>\n\n\n\n<p>Those fortunes have changed drastically as this one year pass.<\/p>\n\n\n\n<p>After peaking at a high of $49.77 within its first week of trading in April 2019, the stock had crashed below its IPO price by August. Jumia lost its \u201cunicorn\u201d status by September and the stock now trades just over $3 or around $250 million in market capitalization.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"485\" data-src=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/Pic8-1024x485.jpg\" alt=\"\" class=\"wp-image-152 lazyload\" data-srcset=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/Pic8-1024x485.jpg 1024w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/Pic8-300x142.jpg 300w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/Pic8-768x364.jpg 768w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/Pic8-1536x727.jpg 1536w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/Pic8-2048x969.jpg 2048w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/Pic8-1200x568.jpg 1200w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/Pic8-1980x937.jpg 1980w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/485;\" \/><figcaption>ANC Trading Room<\/figcaption><\/figure>\n\n\n\n<p>The initial  run was the result of \u201ca confluence of market conditions, a scarcity of this kind of opportunity [an African tech company listing in New York] and a lack of interrogation because they were so many reputable anchor investors already in the business,\u201d  Those investors included Africa\u2019s largest telecoms operator MTN, French insurance giant AXA and Swedish telecoms operator Millicom. Global payments giant Mastercard also invested $56 million in a private stock sale ahead of the IPO.<\/p>\n\n\n\n<p>Jumai&#8217;s shortcomings<\/p>\n\n\n\n<p>Jumia\u2019s first  battle amid its IPO came in form of a debate over its identity. Despite being incorporated in Germany, listed in New York and headquartered in Dubai, Jumia\u2019s definition of itself as African in its S1 filing prompted intense scrutiny from African industry insiders. As Jumia CEO and co-founder, Sacha Poignonnec, explain that the company\u2019s identity stems from its focus \u201cto bring some value to the African consumers.\u201d<\/p>\n\n\n\n<p>The company\u2019s first post-IPO earnings call came on the heels of damaging allegations of fraud and \u201cmaterial descrepancies.<br>\nThe company leadership dismissed that and maintained operations were \u201ctransparent\u201d even as its share price tumbled.<\/p>\n\n\n\n<p>our months later however, the claims of fraud came from within the company itself as Jumia disclosed it had uncovered instances of improper orders being placed and subsequently cancelled on its marketplace platform. Jumia claimed the fraudulent orders had no impact on its financial statements even though they had wrongly inflated its order volume by around $17.5 million.<\/p>\n\n\n\n<p>Pursuing profit<br>\nJumia has told investors it has a target of attaining profitability by 2022. It is still reporting major million-dollar quarterly losses but not trending towards reducing losses.<\/p>\n\n\n\n<p>While Jumia has now stepped up cost-cutting measures, shutting down operations in Rwanda, Tanzania and Cameroon in the last six months, it has also doubled down on its existing markets, exploring ways to widen its user base, order numbers and revenue.<br>\nLast July, Jumai partner with Vivo energy to set up pick-up stations at Vivo\u2019s over 2,000 fuel station outlets, allowing customers place and pick up orders as well as make payments.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"676\" height=\"399\" data-src=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/unnamed-1.png\" alt=\"\" class=\"wp-image-122 lazyload\" data-srcset=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/unnamed-1.png 676w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/unnamed-1-300x177.png 300w\" data-sizes=\"(max-width: 676px) 100vw, 676px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 676px; --smush-placeholder-aspect-ratio: 676\/399;\" \/><figcaption>Did you know ANC Stock Investment Ltd is an Introductory Broker to FX-Primus ?<\/figcaption><\/figure>\n\n\n\n<p>After months of testing and using Jumia Pay, its in-house payments solution, within its marketplace ecosystem, Jumia has stepped up plans to spin off the service and open it up to third party users. The service which is now live in six African countries has already shown promise with payments volume and value more than doubling last year, according to Jumia\u2019s financial statements.<\/p>\n\n\n\n<p>It\u2019s yet unclear if or when Jumia\u2019s long-term bet and investment in African e-commerce will pay off for investors. But one exit possibility could come in form an acquisition by a global e-commerce player, Satchu claims. \u201cThey do have a first mover advantage and with these sort of valuations, it might be attractive for a bigger player to scoop them up as a quick market entry point.\u201d It\u2019s an of-cited exit theory among local industry insiders.                    <\/p>\n\n\n\n<p>Invest with us today at www.ancstockinvestments.com<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Year now since JUMIA was listed on the New York Stock Exchange market (NYSE)&#8230;&#8230;<\/p>\n","protected":false},"author":2,"featured_media":157,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10],"tags":[],"series":[],"ppma_author":[464],"class_list":["post-151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - 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